KUALA LUMPUR: Malaysian palm oil futures bounced back on Wednesday from a 10-month low hit in the previous session, tracking a stronger performance in soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 1 percent at 2,456 ringgit ($577.07) a tonne at the close of trade, its biggest daily gain in a month.
The market rebounded from Tuesday's low of 2,425 ringgit, its weakest since Aug. 8, marking its second session of gains in three.
Traded volumes stood at 58,911 lots of 25 tonnes.
Palm prices are up as "soyoil is quite firm today," a futures trader from Kuala Lumpur said.
Another futures trader said although palm was tracking firmer soyoil, it could face resistance "in view of weakness on the energy front," he said.
Movements in the soyoil market generally affect palm oil prices as both vegetable oils compete for a share in the global edible oils market.
Soybean oil on the Chicago Board of Trade climbed as much as 0.3 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose 0.1 percent.
Palm oil prices may also take direction from crude oil prices as the tropical oil is used as feedstock to make biodiesel, a fuel substitute.
Crude oil prices fell over 1 percent on Wednesday on rising stocks in the U.S. and growing output from the Organization of Petroleum Exporting Countries (OPEC). In other related oils, the September contract for palm olein dropped as much as 0.6 percent. - Reuters